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Apple TV Set-Top Box Predicted to Sell 4 Million Units, Grab 32% Market Share in 2011

Monday December 12, 2011 9:49 am PST by Eric Slivka

Market research firm Strategy Analytics today reported on the release of its new research report covering "connected TV players" such as the current Apple TV and Roku boxes. According to the report, Apple is predicted to reach sales of four million Apple TV units for 2011, leading the way in a rapidly-growing market with a 32% share.
“Apple is leading this nascent market, which it still considers a ‘hobby’.” says Jia Wu, Senior Analyst at the Connected Home Devices (CHD) service. “As Apple prepares for its expected launch of smart TVs in 2012, rival platforms must accelerate their development plans to keep Apple from running away with the connected TV business, as it has done in smartphones and digital music.”
The report also notes that Apple TV users tend to spend more money on TV shows and movies than users of other set-top connected TV players, with 30% of Apple TV owners reported have rented content compared to 20% of owners of other devices.

Overall, Strategy Analytics estimates that the market for connected TV players has doubled this year, reaching almost 12 million units on the momentum of considerably lower pricing compared to previous years. The current Apple TV debuted in September 2010 priced at just $99, substantially cheaper than the $229 price tag on the original hard drive-based Apple TV.

Apple has long considered the Apple TV to be a "hobby", but rumors are increasingly pointing to the debut of a connected television set from Apple as soon as late next year. Such a device would presumably integrate many of the aspects of the current Apple TV box such as iTunes Store access and streaming from iOS devices directly into the television set. Apple is also said to have been working on revolutionary Siri-powered voice input for interacting with the television.

Related Roundup: Apple TV
Buyer's Guide: Apple TV (Neutral)
[ 105 comments ]


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pilot1226
83 months ago
It would be nice if this supported 1080i/p rather than just 720p
Rating: 17 Votes
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WestonHarvey1
83 months ago

What market is this when Microsoft has millions more Xbox 360s already in people's homes? I'm not arguing that the Apple TV won't continue to increase in sales (I have one), but such numbers are complete BS. People are going to buy/rent content either on their 360 or their Apple TV, but not both (in significant numbers)


My XBox 360 is loud and takes a long time to start up. I won't leave it running all the time because I'm on my third one and I'm afraid it will break again.

The Apple TV is quiet, uses hardly any electricity and is always ready to go.
Rating: 7 Votes
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Liquorpuki
83 months ago

Love Apple TV 2, got 3 of them. Almost a no-brainer for any household with Apple devices and Netflix account.


This is what I use my PS3 for. Which means my PS3 is like an Apple TV, but also plays Blu Ray, DVD's, and games.

All these analysts are full of BS, throwing out marketshare %'s nobody knows how they quantified. For an Apple TV to be successful, they need to make a huge power play that changes the whole industry like they did with music. This is gonna be the difference between an Apple TV and a regular hybrid TV. I want to know what that power play is.
Rating: 7 Votes
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dwd3885
83 months ago
Apple users spend more money on Movies and TV Shows because have you seen the prices? A movie is $3.99 on the AppleTV, NEVER discounted, and that same movie is .99 cents on GoogleTV and Amazon.
Rating: 6 Votes
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drober30
83 months ago

What market is this when Microsoft has millions more Xbox 360s already in people's homes? I'm not arguing that the Apple TV won't continue to increase in sales (I have one), but such numbers are complete BS. People are going to buy/rent content either on their 360 or their Apple TV, but not both (in significant numbers)


Mostly kids own Xbox 360 and don't rent movies. Mom & Dad own Apple TV and rent movies. Mom & Dad do not turn on or want to turn on Xbox.
Rating: 5 Votes
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Spoony
83 months ago
Apple TV works well.

Had some non Techie girls over this weekend. The go "Wait how do you have Youtube on your TV?!". They proceeded to watch 20 videos and have a living room dance party.

Best 100 bucks I've spent this year by far.
Rating: 5 Votes
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dagamer34
83 months ago
What market is this when Microsoft has millions more Xbox 360s already in people's homes? I'm not arguing that the Apple TV won't continue to increase in sales (I have one), but such numbers are complete BS. People are going to buy/rent content either on their 360 or their Apple TV, but not both (in significant numbers)
Rating: 4 Votes
Avatar
Kaibelf
83 months ago

What market is this when Microsoft has millions more Xbox 360s already in people's homes? I'm not arguing that the Apple TV won't continue to increase in sales (I have one), but such numbers are complete BS. People are going to buy/rent content either on their 360 or their Apple TV, but not both (in significant numbers)


The only issue is that with the 360, if you want to use those services, you also have to pay MS a subscriber fee. I ended up opting for the 99 bucks for the ATV2 because I have no interest in online gaming vs. some kids on headsets, and my MMO works on xbox live silver for free. Not the case for everyone, but certainly, it's a hard sell to say "subscribe with us to have access to a service you pay a subscription fee for elsewhere" when you bought a $300 console already.
Rating: 4 Votes
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Icaras
83 months ago

Almost every new TV now can do what ATV does and then some which makes ATV a useless gadget. That is unless people prefer to rent their shows from iTunes for higher price. Some iFans do but most people don't.


Right...Really? Almost every new TV can Airplay straight from my iPhone? Can they also be controlled via the Remote App on my iPhone? What about iCloud iTunes Match? I've got thousands of songs I can play instantly. Same with TV Shows. Can I just instantly start playing TV shows I purchased on iTunes on one of these new TVS? Oh, and photo stream? Instant slideshow from photos taken from my iPhone without even syncing to my computer too. Ah yes, lets not forget I can also play NOVA 2 and Real Racing HD on my TV with my iPad as a controller.

Useless indeed. :rolleyes:
Rating: 4 Votes
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LethalWolfe
83 months ago

Mostly kids own Xbox 360 and don't rent movies. Mom & Dad own Apple TV and rent movies. Mom & Dad do not turn on or want to turn on Xbox.


The Average gamer is 37yrs old (http://news.cnet.com/8301-13506_3-20069682-17/a-childs-hobby-average-gamer-is-37-years-old/) and the video game console seems to be the weapon of choice for streaming Netflix (http://www.homemediamagazine.com/netflix/nielsen-netflix-users-primarily-stream-through-game-consoles-24620). Not to mention that MS is cracking open the door to having the 360 replace traditional cable/satellite boxes.

Apple certainly has upset traditional market players in the past but they've yet to show anything w/:apple:TV to set it apart from it's competitors in any meaningful way. Sure, it ties into the iTunes store but the video side of the store isn't nearly as successful as the music or app sides.


Lethal
Rating: 4 Votes

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